Community Affairs:
 Midwest Regional Conference on Reaching Unbanked People:
Making Business Sense of Serving the Unbanked
Monday, May 1, 2006
Federal Reserve Bank of Chicago
On May 1, 2006 at the Federal Reserve Bank of Chicago, the Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency and the Department of the Treasury held the first of four regional conferences to address the problems faced by those outside the financial mainstream.
Topics discussed included building partnerships and identifying solutions, serving immigrant communities, selling the business benefits of serving the unbanked within the institution, reaching young customers, developing new products, and providing financial education to help new and potential users.
Welcome and Introduction
Dan Iannicola, Jr.
Deputy Assistant Secretary for Financial Education
US Department of the Treasury
Mr. Iannicola discussed how access to an account can be "the on-ramp to the financial mainstream, leading to things like asset accumulation, security and a better life, as opposed to not being in the financial mainstream, which is more or less a dead end of high fees, expensive borrowing, and no accumulation of wealth."
Anna Escobedo Cabral
Treasurer
US Department of the Treasury
Ms. Cabral described the importance of partnerships between the Federal government and the private sector in reaching the unbanked and described the National Strategy for Financial Literacy.
JoAnn Johnson
Chairman
National Credit Union Administration
Ms. Johnson discussed the importance of trust in the delivery of financial education and serving the unbanked and described asset building opportunities for low-income people.
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Issue Overview
Dory Rand
Supervisory Attorney
Sergeant Shriver National Center on Poverty Law
Ms. Rand described the debt levels of Americans and the need for financial education as well as barriers to asset building. She also described Financial Links for Low Income People Coalition pilot in Illinois.
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Panel Discussion
Ed Jacob
Manager
Northside Community Federal Credit Union
Mr. Jacob's presentation described the need to provide appropriate financial products to the unbanked market, including payday alternative loans. He also described the credit union's experience providing that product and described partnerships with employers to deliver financial services. To see his presentation, click here.
Margaret Henningsen
Founder and Vice President
Legacy Bancorp
Ms. Henningsen talked about her bank's First
Accounts program, combining high touch and high tech ways to bank the unbanked and described the start up of her institution to serve underserved markets.
David Marzahl
Executive Director
Center for Economic Progress
Mr. Marzahl spoke regarding the opportunity for tax time to be used to promote financial literacy and financial planning. He also described plans for a reloadable card to receive tax refunds.
James Maloney
Chairman
Mitchell Bank
Mr. Maloney spoke from a community bank perspective about the need to identify what unbanked customers believe that they need, and focus on getting them into banks. He talked about providing a range of services, including a variety of remittance products. To see his presentation, click here.
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Regulatory Update
Bert Otto
Deputy Comptroller of the Currency
Office of the Comptroller of the Currency
Mr. Otto described the importance and benefit to banks to serve the unbanked market, given that market is where there is most room for growth. He also discussed the need to provide new and responsive products to a broader range of customers.
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Roundtable Discussions were held on:
- Building partnerships and identifying solutions;
- Serving immigrant communities;
- Selling business benefits of serving the unbanked within the institution;
- Developing new products, services and technology;
- Providing financial education to help new and potential customers; and
- Reaching youth customers.
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